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British government forecasts 23.5 billion pound loss from bank bailouts
March 8, 2017 / 2:15 PM / 9 months ago

British government forecasts 23.5 billion pound loss from bank bailouts

LONDON (Reuters) - The British government has forecast that it will make a 23.5 billion pound loss on bailing out failed banks at the height of the financial crisis after a rise in the lenders’ value in the last four months.

A man looks towards the Canary Wharf business district in London, Britain December 11, 2016. REUTERS/Toby Melville

The Office for Budget Responsibility, Britain’s independent budget watchdog, said it narrowed its forecast for potential taxpayer losses by 3.3 billion pounds since November.

The government is expected to make a 100 million pound profit on its bailout of Lloyds Banking Group as the lender is expected to return to the private sector this year. In November, the watchdog had forecast a 400 million pound loss.

Taxpayers face a 29.2 billion pound loss on the value of the government’s shares in Royal Bank of Scotland. That compares with a previous forecast of a loss of more than 32.4 billion pounds in November.

Reporting By Andrew MacAskill and Lawrence White, editing by Anjuli Davies

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